RAVE Restaurant Group ICR Finance Conference January 2, 206
is a multi-brand restaurant operating company Founded 958 Primarily buffet pizza concept 237 restaurants open U.S., Middle East, Honduras 99% Franchise operation Consistent royalty revenue stream Created 20 Leading Fast Casual pizza concept 400+ restaurants under development Dual development: Company + Franchise Quarterly system wide sales CAGR of 24%
Sales Contribution and Growth Domestic System-Wide Retail Sales 40,000 20,000 04,46 03,230 04,70 03,65 05,36 08,47 2,248 8,289 24,242 3,399 00,000 80,000 60,000 40,000 20,000 - QFY4 2QFY4 3QFY4 4QFY4 QFY5 2QFY5 3QFY5 4QFY5 QFY6 2QFY6 Pizza Inn Pie Five
Sales Contribution total retail sales mix A Fast Changing Company FY4 2QFY6 (TTM) % 30% 70% 89% Pizza Inn Pie Five
Our Fans Millennial Moms 30 40 year-old females Brings kids and other moms Casual environment, easy to park, can bring the chaos Looks for value, variety, speed & healthy options Keep the kids happy with less hassle Hang Out Gang 6-25 year-olds Male driven Individualism is key Casual environment Value & variety Want to feel important/cool 25-35 year-olds Male & female Lunch Crew Look for value, variety & speed Elevated quality in the food and environment Expect transparency in ingredients
Pie Five Restaurant Growth Pie Five Unit Growth 90 80 82 70 68 60 50 54 40 40 30 20 5 8 9 20 24 3 0 0 QFY4 2QFY4 3QFY4 4QFY4 QFY5 2QFY5 3QFY5 4QFY5 QFY6 2QFY6 Company Franchise
Geographic Growth U.S. 2 as of December 3, 205 82 restaurants open 2 2 22 2 7 2 2 7 4 3 5 23 states and DC 22 franchisees 6 company markets Traditional streetside + new non-traditional location tests regional mall Casino major college transit station now open coming soon not here (yet)
Solid Restaurant Level Economics Restaurant Level Economics* Annual Unit Sales $750,000 Based on units in 2 nd quarter comp base Restaurant Operating Cash Flow 7 9% margin Occupancy and fixed operating costs drive variability Allocated Mktg & Adv Expenses 5% of net sales Invest to build brand understanding and trial Build Out Investment* Size 2,000 2,400 s.f. 2,200 is ideal Location Retail strip center end cap Leased space Construction $450,000 $475,000 Before landlord T.I. allowance and pre-opening expense Payback Targets.5: 2: sales/investment ratio 3 year cash on cash return target *targets calibrated on units in comparable store base at end of Q2 FY6. *restaurant operating cash flow represents the pre-tax income earned before: ) Allocated marketing advertising expenses 2) Depreciation and amortization 3) Pre-opening expenses 4) Operations management and extraordinary expenses; and 5) Deferred rent adjustment (net) and impairment.
Comp Sales Growth Quarterly Two Year Trends 25% Two Year Reported Comp Sales Growth* 20% 7.7 6.6 9.7 8.5 5.5 5%.9 0% 5% 0% -5% Q 205/4 Q2 205/4 Q3 205/4 Q4 205/4 Q 206/5 Q2 206/5 Prior Year Quarter Current Quarter *comp sales are calculated based on restaurants open 8 months or more in the reported quarter
Evolution Increased Throughput Reduce Bottlenecks Service Line Efficiency Technology Enablers Fresh Salad Speed Station Online Ordering Kiosk Test Customer Enabled Checkout
Evolution - Food & Service Rave-able, Crave-able Comeback Quality Food Larger Pizza... Better Value Addition of Garlic Breadstix and cheesestix and bacon cheesestix Bundle Merchandising Pizza bundle Salad bundle Breadstix bundle Kids bundle Service So Good it Drives Sales Training P FIVE vibe behaviors Six Slices of Service Recruitment Enhanced screening tool Custom tailored personality profile Rejecting 40-50% of applicants BEFORE granting interviews Feedback & Reward Mystery shop 2X/week Next AM feedback Quantitative & Qualitative feedback CASH incentives to crews achieving 00% shop
Investment Highlights Multi-branded Restaurant Company Pizza Inn providing stable earnings contribution Franchise model Experienced, local franchise owners Pie Five pioneering Fast Casual Pizza Segment with significant growth upside Early days for this emerging segment Strong unit economics and new restaurant pipeline Continued concept evolution to maximize success
Breakouts :00 AM Mediterranean Salon 5 2:30 PM Coquina Ballroom Room 2 Company Representatives: Randy Gier, CEO Tim Mullany, CFO